Real estate attorney talks settlement that eliminates the 6% commission for realtors
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- Опубліковано 17 бер 2024
- Real estate attorney Doug Miller talks with FOX 9's Leah Beno about the settlement that eliminated the 6% commission for realtors. Through the settlement the National Association of Realtors (NAR) agreed to pay $418 million in damages.
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The settlement does not cut commissions in any way. Commissions have always been negotiable. It just means that listing agents can’t communicate the commission split on the mls. Nothing to stop them from picking up the phone and asking about the split. This will not bring down housing costs. It will increase the likelihood of buyers having to come out of pocket for buyers agent compensation. Basically makes it harder for low income and first time buyers. This was really a win for the lawyers.
If this creates a barrier for some buyers, than it would decrease the demand side. Some sellers are hesitant to list their houses because of the large fees in the past and with a 3% fee, you will see those sellers are more willing to list their house. This will help push down the housing prices a little.
@@donv5304 only for properties on the low side. It only creates a barrier for low income buyers. Buyers with money behind them it won’t affect. I have a hard time seeing low income buyers being impacted in this way as a positive.
Just an Ambulance chaser getting $410 million.
@@donv5304same sellers will now have to pay 3% buyers closing or they walk, less demand, lower housing price for the seller
My understanding is that their will be no mention of commission split in the listing agent contract
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance.
The government will have no choice but to print more notes and lower interest rates
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
Finding financial advisors like Amber Angelyn O'malley who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
How can our vets now buy with a VA loan? With VA mortgage allow the buyer to pay for representation? I sure hope this doesn’t hurt them
Didn't hurt me. Got paid to buy my house. Buyers rebate
@@TheMagnificentPuertoRican hasn't gone into effect yet. If the government doesn't change the lending rules, most Veterans will not be able to use the VA loans because those loans do not allow for them to pay an agent.
This fool just screwed the buyers he claims to be fighting for. 👏👏👏
He never claimed to be fighting for buyers. He sued to get transparent and fair transaction costs for both parties. His key point was: "why should sellers be forced to pay a commission to someone negotiating against them?"
@@dao8805 Perfect summary.
He's not fighting for buyers, he's a karen getting his attorney friends paid!
Check the voter ballot 😂 💴
you truly have no clue. He sued to get a big payout from an easy and feckless target, the NAR@@dao8805
Attorneys charge, most of them, at least 35% of law suits some 25%. Why don't they start charging 1,2 or 3% themselves???? How would they like it?
In Our own mal practice case the attorney charged 40%. Absolutely robbery
Because any loser can become a realtor. Big difference.
@@theboss7020 not everyone can become a Realtor. There is rigorous training and continuing education. You also need money to start like any business. As many as 30% who get their real estate license do not make it past year 1 because it is NOT as easy as many people think.
@jlp771 it's easy. Barriers to entry are low, and most will fall off when the market gets tough and actually takes talent. Thank you for proving my point.
Right, let’s take money out of the Realtors pockets and put it into the attorney pockets.
Because they have bigger student loans?! Your a genius
@@dannyjohn5175 So because they have more debt, they deserve more money?
You're @@dannyjohn5175
My best friend is a real estate attorney and she has ZERO interest in what they are speculating. She just wants to prepare documents in the peace of her office and clock out at 5pm. 😂 Not deal with the chaos of brokering real eatate transactions!
Right! These attorneys got 40% of 418 million
Here’s the wave of misrepresented buyers for the next 3 years.
Yep. And the lawyers will win again with a buyer class action lawsuit.
There will be a lot of dual agency lawsuits again (as there were back the 80s which lead to buyer representation laws) and that means an income stream for attorneys. Follow that money right?
Realtor commissions generally exceed attorney fees , making all these lawsuit comments irrelevant.
Actually they're totally relevant comments as there will be alot of unrepresented buyers now. Realtor commissions were never a fixed amount. How much of the $418M are these greedy attorneys getting?
@@billcunningham634 No one is saying buyers cannot be represented. It is just common sense that sellers should not be forced to pay a 2.7% commission to someone negotiating against them. '
This attorney is in MN where commissions are 6% and above because realtors use the 2.7% buyer's agent commission as an excuse to charge at least 6% in order to cover expenses and "make a living". They always say the 2.7% is a "fixed" percentage.. There is definitely collusion among realtors in this state.
I am not a fan of attorneys either, but to say this one is greedy for taking a cut after 40 years of work and fronting expenses for a lawsuit of this scope is not a fair accusation when there are realtors here complaining who are making tens of thousands of dollars on single sales that may take only days or weeks. Agents should be reasonably compensated for the work they do, but not take a percentage of the value of a property.
Took away dual agency to create more dual agency. He did it for the money not the morality. Just another class action cash grabby attorney.
Exactly... this is about $ not bringing the house prices down... and NAR saying it'll bring house prices down is ducking laughable. House prices will not decrease.
Right? He starts out talking about his disappointment over not changing the practice of dual agency yet applauds the creation of a system that will favor it! The fact is that dual agency is high risk and results in many lawsuits and is therefore an income stream for attorneys. Follow the money.
You can say that again ...typical greedy attorney
He makes a key point: "Why would you pay someone to negotiate against you?"
@@deeh5126 He is not talking about bringing house prices down. This is about fairly compensating anyone who actually works on a sale and making those compensations negotiable.
Please, this has nothing to do with making things right for the industry. The only motive here is for attorneys to claim a small fortune where opportunity presented itself.
Sadly you're 10,000% correct...
It makes everything right! Long overdue & hallelujah!!!
Doug is a TOOL!!! More concerned about Attorneys replacing Realtors.
If I am a seller who wants maximum exposure of my property and attract as many buyers as possible with their agents and I don't want strangers at my house with fake pre-approval letters, why am I prohibited to advertise buyer's agents compensation, it's my property after all? Who is the winner of this lawsuit? For sure not the first time buyers, who barely have enough money for down-payment and are now left without representation and I am not sure the sellers are going to win from it, considering the demand might drop with rising cost for buyers to buy. Dual agency is another Huge minus of this outcome, that will attract new law suits quite soon...
This is such a good point. Sellers will be inviting complete internet strangers with no vetting into their home? A good buyers agent will not waste their time showing homes to a buyer they have not either verified proof of funds on cash buyers or called the lender and reviewed their DU to ensure they are qualified for a mortgage and have cash to close. So, a Seller is supposed to just open the door to a "buyer" with no ID check, no verification if they are actually qualified to buy or "just like to look at houses" or worse a targeted home invasion. Sounds scary, but criminals look for soft targets. Oh, and sellers PLEASE put all your valuables, keys, medications, ans weapons including kitchen knives away before letting an internet stranger in your house. 😂
I was wondering that because I flip houses and I regularly advertise buyer agent commissions with bonuses ... do I not have a 1st amendment right to advertise??
Welcome to the next Craig'sList for home buyers! Idiot decisions from "let's get rich" Attorneys .
Fake approvals always been a thing. The only thing that changes is now the buyers need to call and ask. So not sure what you’re getting at.
"pay it to the buyer"
Who ?
Who's going to pay it to the buyer?
You studied this? Commissions have always been negotiable. There is no back room conspiracy amongst real estate companies. I’ve been in the biz since 1985 in the corporate end as well as an agent and an educator. If the consumer wasn’t willing to pay fees whether it be the service industry or any product, the law of economics would prevail as always. I am curious as to the real reason this came up as you realize that attys never negotiate their fees, is this a group of attys that colluded together to take the business away from real estate agents to get a piece of the action. I think so.
I have only been in real estate 12 years and I have to say I have never heard of any one "setting" a commission amount in fact its drilled into our head to never do that. .. honestly not that we could create a set amount if we even tried... even this lawyer pointed out he average is 2.7% wich means a -.3% loss that doesn't sound like the coluting is very effective.
That's exactly it
I have never met a listing agent in MN who will negotiate on the 2.7% part of the commission that goes to the buyer's agent. Like this attorney said, "Why would you want to pay someone to negotiate against you?
The goal is to stop coercing sellers to pay for something that is against their interests. Everything should be negotiable without the powerful real estate lobby making rules that benefit its own interests first.
You are severely uneducated in how a buyer's agent helps you to prevent getting sued. Shameful.
@getrealrealestate Outstanding point.
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Attorneys are the big winners here.
Attorneys bill by the hour for the work they do; they do not charge a percentage based on the value of a property.
@dao8805 what percentage of the settlement did the attorneys get???
You don't think that will change OVERNIGHT???@@dao8805
Attorneys have been providing this service for decades and save sellers THOUSANDS! Years back a seller I met shared he added $20+k to his retirement RV travel account and paid $450 to close through an attorney. Like everything else I'm sure the fee has increased/maybe doubled or tripled but face it a child can point out a living room. You can negotiate just like a Saturday garage sale and leave the close to a legal professional. Let the commissioned 'agent' deliver your next pizza
@@Weguaranteetosellyourhome916 40% of this suit to answer your question.
Hidden fees?? Can't cancel the agreement?? What is he talking about??
Realtors are sneaking all kinds of administrative fees into their listing agreements now and betting the seller will figure the expense of hiring an attorney to get out of a contract is prohibitive. Obviously, as a realtor, you are fine with this, but as a seller I am not.
@dao8805 thank you for the clarification. And as a Realtor, I never "sneak" anything into my agreements with clients. I always advise them to go line by line with contracts and ask me any questions they have as I work for them.
@@dao8805I do not know what Brokerage your working with but Transparency is key and all Sellers and Buyers are given a statement before clear to close Nothing Sneaky unless your working with a greaseball Attorney
Careful. You are starting to make accusations and assertions that simply are NOT true. You are treading toward making libelous statements@@dao8805
Exactly, he’s such a lying rat, it’s cringey listening to him spew this garbage. A second later he admits he wants the business for himself instead. The lawyers he colluded with to create this farce are getting paid in the several hundred to thousands of dollars an hour!!! He is only about self preservation and padding his own pockets is the take away from listening to this.
It’s actually embarrassing that NAR lost to this guy. He has no clue what he’s talking about or what he just did. Congrats on making it exponentially more difficult for low to moderate income families to purchase a home. Key take away from listening to him “an attorney can help negotiate” Not all states are attorney states for real estate transactions and in my experience the ones that are make the process a disaster and longer and more painfully drawn out. This guy has his own agenda and with it just screwed tens of thousands of potential home buyers in the process. This settlement will bring lots of unintended consequences. NAR has been a major letdown.
You are 100% correct. I have been saying the same thing. The ones that are really going to get hurt are low and moderate income that are struggling to get into a home to begin with.
Will be Great when Warren Buffett counter sues him ! lol
@@The_Dude_aka_El_DuderinoYep! Most buyers cant even get a good mortgage rate yet struggle to pay just the closing costs for attorneys and inspections or even repairs! Now they have to pay buyers commission thats sometimes $8k-25k . I just see the closing process of a house will be wayy longer now.
Wrong ! Congratulations to the people that don’t have to get wambozzled by these agents anymore! Taking $20k from a $300k home is a crime!
@@jonlj77 That's incorrect. The commissions are still going to get paid. This lawsuit had NOTHING to do with the amount of commission. The only thing this will change is who is paying it. And unfortunately, it's putting the burden on the buyers.
There are ways to legally terminate a contract😂 Surprised the lawyer doesn't know that lol
All of our agreements in Florida can be terminated by either party. The agent OR the broker. I just cancelled one this week because I didn't like the Seller and was tired of working with her. She didn't have to pay a dime! The buyer is only bound to ensure I'm compensated for any properties that I already showed them should they enter into a purchase agreement and successfully close. But, if we don't enjoy working together, they are free to cancel and move on with their lives...just like we take a gamble on them even buying. People change their minds every day. Decide not to buy. Decide to buy in a different area. Lose their job. Die. They waste a ton of their agents time and that's why when something actually closes, it costs everyone more. If it goes to an hourly model or flat fee,I welcome it due to the countless house of free work done on behalf of buyers especially. I'll likely make MORE money annually working that way.
😂😂😂 thus guy us a joke 😂😂😂
@@mommom3172 This piece is about MN; the laws here are much more skewed to favor the realty industry over consumers. It sounds like Florida has a much fairer legal landscape when it comes to real estate sales.
This is an amazing thing for the citizens of the United States. The rest of the world has bought and sold for less than 2%. We are just fixing the greed that ran the industry. Long overdue!!
Hallelujah!!
@evan I laughed when he said they were stuck.
lol @ a lawyer charging a commission of 10%-20% to combat 5%-6% commissions.
they charge 30% they all charge 30% and its listed on their websites its so set in stone good luck ever getting it reduced.
@@christopherknight1890 exactly yet the same attorneys that are fixing commissions are saying, realtors are guilty of fixing commissions.
Class Action Lawsuits often get even more than that. It's legalized extortion & nothing more.
I am not a fan of attorneys but for real estate work they charge by the hour, so it ends up being a fraction of what a realtor would charge.
The only time attorneys charge a percent of a lawsuit is in risky torts that take years to litigate and have huge up-front expenses that the attorneys do not recoup until the case is settled. These cases typically involve a number of attorneys and support staff, so they are making a massive investment that may not pay off at all and will take years at best. Even in class action suits, the attorneys do not make the rules and every settlement has to be signed off on by a judge. In this case, this attorney spent 40 years on this and has probably had hundreds of thousands if not millions invested in this case. By contrast, real estate agents are going out and making tens of thousands on single sales that can happen in days or weeks and not making anywhere near the kind of investment in the process as an attorney and without having to have so much as a bachelor's degree. Making unfair accusations does nothing but discredit your argument.
"Making unfair accusations does nothing but discredit your argument." Back at ya@@dao8805
Good luck getting a buyer for your home when you dont pay their agent lol. This guys is out for pr because buyers dont have the money to pay commissions so any rational minded seller will understand that they have to offer something if they want their home sold. Otherwise they might as well sell for sale by owner and statistically 86% of those dont work out.
This! Most buyers WANT to work with agents. And, I'll definitely make calls to listing agents on their behalf when this whole model changes but I have amazing relationships with my clients and I know they will forego seeing any listings that the Seller will not be negotiable and offer incentives. They don't want to "wing it" and they know the listing agent can't look out for their interests and concerns. Their job is to look out for the Seller. Buyers are already pinched. They can't afford to pay us upfront hourly. That would deplete their savings and possibly mess up their cash-to-close on their purchase. I will still gladly work with my buyers because Sellers really don't realize that Buyers don't want to work with them directly, and generally perceive them as greedy especially after the last 4 years and will walk away as soon as they feel further taken advantage of.
HUD foreclosure figured that out real quick they tested it and it smashed them big time.
The lawsuit was about the collusion which you’re pretty much applauding. No mkre steering clients away for your own selfish gain. Pick up a phone and ask.
I think it will mostly depend on your market. I heard the San Francisco Bay area is still an over heated market. In that area, I think more buyers will either go it alone or have to pay their agent. If a seller gets multiple offers, one of those buyers will either not have an agent, or be paying their agent, in order to win the deal.
Austin TX on the other hand is a buyers market. The interest rates are crushing the moderate income class here. The mass layoffs in tech have greatly reduced the relo's to the area, and we have so many tens of thousands of new construction here that with such high supply and low demand, in order to be competitive sellers are going to advertise in one way or another that they'll pay the buyers agent.
Agents aren’t needed. That’s the point. Everyone knows this. Look at the rest of the world. The US is the only one that has a system at 6%. It’s quit disgusting and a change is long overdue. The only ones crying are the agents who got to ride the gravy train all these years!!
I’m not a realtor but have used them for all my house purchases for years. I’ve never ever in my life been told by any realtor that “oh they are not paying at least 2.7% for the buyers agent, I can’t show you that home”. Did anything really get fixed or are we on our own now to figure out how to avoid paying realtor fees as a seller AND AGAIN as a buyer?
Why did/does the real estate agent need 6% of half a million per house they sell??? Isnt that an absolutely disgusting amount? Im not sure removing it from contracts solves anything, but Im damn sure that they dont need that much per home they sell. At some point its just greed.
I agree! And yet the realtors are over this comment section accusing this attorney of greed.
The sellers always have the choice to negotiate that # or sell For Sale By Owner.. You're not understanding there never was a 6% standard or a 5% or a 4%. Everything has always been negotiable, including which party pays closing costs..
@@billcunningham634 Everything you said may be true in other states, but not in MN. This attorney is in MN where the RE industry claim is that the commission is negotiable but just try to find a realtor who will budge below 6% and some are demanding 10%. When a seller tries to negotiate with them , the comeback is that the 2,7% buyer's agent fee is "fixed" and that the listing agent needs the other 3.3% to cover expenses and make a "living". Realtors are definitely colluding in MN to keep everything 6% or higher which means sellers are forced to pay 2,7% to the buyer's agent who is negotiating against them. If everything here was negotiable in MN, there would have been no basis for this lawsuit.
Also, what he said about cancellations is true. A friend (the seller) tried to cancel a contract but would have been on the hook for over $20k to her agent. This suit needed to happen to address things that were wrong in MN, not necessarily across the country.
They need 6% for marketing. A new Mercedes every week is a marketing cost.
Very rarely does anyone pay six percent. Plus understand that a home seller will reduce the numbers of buyers because if the fee is not included in the sales price, the buyer cannot incorporate it into their mortgage, limiting their buying pool.
We have buyers asking for a lot of concessions from sellers because rates are super high. No they will be asking for even more.
Home buyers have to negotiate their own fee now! Agents may/will not make as much commission in the future!😮
NAR should not give in. Listing agreements have commission splits from the beginning. Sellers know this from the beginning. We sell homes at market value and if the seller is content with the net amount they wanted, then what's the problem. And the commission is not fixed. There have been listings negotiated 4 and 5%. Some realtors get up to 10% but the listing agreements that sellers sign has the commission split in writing!!!!!!! There is no deception whatsoever. This attorney is twisting things.
This attorney is accurately stating the way real estate transactions are conducted by realtors and agents in MN, which legalized dual agency. In this state, seller cannot get a property listed for less than 6% because they are told the buyer's agent's 2.7% cut is "fixed". There is absolutely collusion among realtors in MN. If that is not the case in your state, good for you. But here in MN, this lawsuit was needed. Sellers should not be forced to pay a commission to someone negotiating against them.
Lots of realtors commenting here criticizing this attorney as being after $$ when they are after the very same thing. This whole thing started with a lawsuit over hidden dual agency. Dual agency (hidden or otherwise) is a blatant conflict of interest and should not be legal in MN; it is not in other states where property sales are not hampered in the least by its absence. Secondly, there are a lot of sophisticated buyers who would much rather get a 2.7 percent (or whatever amount is negotiated) savings on their purchase than pay an intermediary.
You should read the settlement and see that dual agency was not even a part of this lawsuit settlement. As an agent, I have no problem with removing dual agency as I do not participate in dual agency as I feel I should be able to fully represent my client. Also 6% was never a standard and commissions have always been negotiable. All this lawsuit did was remove it from the MLS, it didn't change commission at all, only prohibits where it can be displayed. This unfortunately will only make home buying harder for those that are the most vulnerable, including our Veterans.
You can't pay a buyers agent, who's bringing a buyer then?
They go in redfin and find the house they want, yes people can do this. The buyers offer 1% to the agent.
@@info781 Exactly.
Ya save 3% instead of having a buyer agent negotiate 10-15% off the listed price. "SAVES CONSUMER MONEY" lol....stop it with this bullshit. This guy says "why should a seller agent have another agent negotiate against you" LOLLLLL... in layman's terms he means "I want max money out of the buyer so I can rip them off to the max without a agent to negotiate for them"...the way he says it like its a good thing is terrible...he's telling you straight to your face that he's taking your money instead of having someone fight for you. LOL. Do people really buy this bullshit? I'm a listing agent more than a buying agent and this rule hurts every agent. And especially consumers
@@motorsport2k "negotiate 10-15% off the listed price" lol where have you been the last 12 years? I have never seen a buyers agent do this( for a primary residence). Buyers agent say things like, "well if you want the house put in your best offer as you are competing against eight other people". I will save the 2 % thanks.
@@info781 get a better agent. I've done it routinely
This guy was rich 40 years ago and he forgot about being vulnerable and young enough to not be an expert . What are first time home buyers Do not have money for a lawyer plus down payment Ect ?😢
Do some research - Closing attorneys are crazy inexpensive compared to 'agent feed'. What happens when 1st time homebuyers face FOMO and are pushed into a overpriced/budget straining commodity's 30year commitment by a commissioned 'specialist'?
it seems a lot of attorneys resent realtors for the income they make. when was the last time an attorney waived all or part of their commission when a buyer came up short for settlement or paid to do repairs or even hire a mover to help a family out. How many times a seller was frazzled trying to move and we went to help them pack or clean out the house. the only people to benefit here ar3 the attorneys. NAR left us out to dry . We find out after we paid or dues for 2024.
This didn't eliminate Dual Agency. This eliminated buyers with little money the opportunity to have the proper representation. You're not paying someone to negotiate against you, you're paying an agent to bring a buyer. If you don't want buyers, don't pay a co-op. This lawyer did such a great job creating more lawsuits in the future because the public will be incurring a lot of extra risk.
Exactly! Buyer's agents bring buyers and work hard getting through negotiations and closing.
Yup. Why bother listing on the MLS if you're not paying a co-op? If that's the case, why have an MLS?
I was a Realtor for 40 years . Many lawyers represented both the buyer & seller.
He should disclose his attorney fees, see how the buyers will save the money 😢
Yeah. Getting lawyers involved airways makes things less expensive for consumers.
Right! So glad to be in Florida where attorney review is not required. It slows things down and clogs up the process. It's optional here as it should be.
Why would the seller ever want to pay a commission to the buyer?
They are not paying for the buyer. The listing agent was paying the buyers agent. However if you think about it, the purchase is being made by the buyer and therefore paying the fee.
Where does the $410 million going. Selling your house on your own or buying on your own has been around for ever.
Ironically, the law firm isn't taking a flat fee. 😂 30% is going in their pockets. Homeowners enjoy the $7 prepaid gift cards.
30% goes to the lawyers the rest is divided among millions so they get like $5.00 if they pay a lawyer $1,000 to claim it.
In the current system, there is zero incentive for a buyers agent to negotiate pricing because they get paid from the same pocket as the sellers agent. That’s a conflict that f interest. Realtor fees need to be based on services provided and not the sales price of the house. Im all for a buyers agent transaction and a completely separate sellers agent transaction that is never associated with the price of the house but for the services provided.
You’re right! Buyers should pay for each showing, it’s a numbers game now baby! Great idea
@@hypernovawolf 😂😂😂. That would be awesome. $25 bucks to go unlock the door each time.
@@joelballard4955 $25? you're too nice
Try that strategy with your taxes. Everything in real estate is based on the value. Property taxes, transfer taxes, property insurance, title insurance......
@@mommom3172 😂😂😂😂😂😂. That is an awesome diversion. We are talking about commissions. What are agents worth? How much should a sellers agent get paid and how much should a buyers agent get paid? I think nearly every person who is not in real estate thinks agents are vastly overpaid for the work performed.
Glad you got your big pay buddy!! All realtors are not crooks I think we need to sue you Doug
This man single handedly made real estate more expensive and more unattainable for buyers especially 1st time buyers .....
Commissions have always been negotiable. It has always been negotiable.
I think it already has affected the industry My last 3 deals the buyers were unrepresented which was AMAZING for my sellers who got everything we wanted and then more.
So why should your sellers have been forced to pay a commission to someone who was going to negotiate against them when they could get more than what they wanted without paying it?
They should practice what they preach. They charge 7× more than a realtor!!!
RE broker: 6% commission
RE attorney: $1,000
Also, RE Attorneys : Wait, something ain't right!
That 6% is parted between themselves. Reverting to what commission was should stay. Wouldn't disregard the exploit the agents, builders, and lenders are colluding … plus disproportionate local government taxes that exacerbate hardship to homeownership.
Great, instead of real estate agents making money now attorney's will make the difference.
Real estate agents are GROSSLY overpaid for what they actually do.
It's Realtor® Real-tor NOT realitor! This man is NOT fully informed! As an attorney, he should know that the Seller cannot give a buyer cash to buy their home! This is an inducement and prohibited! This judgment will create more dual agency transactions, which is not in the best interest of either party to the transaction. Commissions have always been negotiable! There is no standard percentage. This will create hardships for first-time buyers, for those with no or little money down, and, sadly, the VA buyer who cannot pay commissions as terms of the VA loan. Disgraceful that this uniformed attorney is sharing incorrect information!
Yes he mentioned some RESPA violations
Sad for buyers. They are the biggest losers. It will give sellers a much smaller pool of buyers too. So not the greatest for sellers either. But, the lawyers win big time ! Way to go NAR !
Can't wait til the assessment to pay nar's, (aka our) loss shows up in realtor dues
Agents aren’t needed. That’s the point. Everyone knows this. Look at the rest of the world. The US is the only one that has a system at 6%. It’s quit disgusting and a change is long overdue. The only ones crying are the agents who got to ride the gravy train all these years!!
My husband and I bought a 5 bedroom house from Lennar, but when the house was built, it only had 4 bedrooms. However, we moved here for work and are now paying $3000/month to Airbnb. We are trying to cancel the purchase of this house, but if we sue them, will they give us any money? We chose this house based on our driver's license, our kids' school, etc. Our experience has been awful.
I remember when tipping at a restaurant was 10% ... now they put 18% 35% and 30% on the receipt and turn the little computer around to where if you try to change it its very complicated
Are you 90+ years old? 15% has always been standard, 20%+ when given excellent service. If you are a 10% tipper, you're the reason why
18%+ is added to your bill today. 😊
holy shit this guy went to law school!? it doesn't take an attorney to realize that he just screwed every buyer in the low and middle income class to shit. i hope this gets shut down as a law. this is horrible.
Who gets the $418 million?
On the other hand, realtors are going to find a way to get paid. Listing agents will control who wins the bid based on who is paying the most commission.
See Page 28, item v of the proposed settlement. Brokers ARE allowed to display buyer agent compensation on their own website. Why is he saying that would be an “end run” around this proposed settlement when it’s allowed in this proposed settlement?
Now I have to log onto 100 different broker's websites to get information. Then why even have the MLS!
Reading is fundamental isn't it!
@@Mike-ys5qdCome on. Commercial agents have been doing this for decades. Pick up the phone, send a text. We get paid to negotiate. Everything can't be automated. I'm cool with it because I like negotiating and getting deals DONE!
Everyone will simply provide the commission % when showings are scheduled. Lockbox code is 1234 and the co-op is 2.8%. Problem solved.
@@PremierREM Some listing agents might not have it displayed at all, because the seller will want to negotiate it with the offer, in case the buyers agent submits a number less than the seller would have been willing to pay.
miller lmao, if i am a seller, and i want to seller my house and pay a commission to anyone seller agent or buyer agent i should be able to, who are you to say i can't i would turn around and sue them because they are stopping a free market for me to be able to advertise that i want to offer a buyer agent 10% to bring me me my clients, you should not be able to stop me from advertising that.
secondly agencies should just tell their sellers that if they want to pay commission to compete in the market place they can.,. they are wrong its not free market
In Punta Gorda, there are 5 townhomes on the market on a sailboat canal where my client's listing is located. They need to get it sold. They should be able to pull every lever in their tool box and put every agent in that market to work if they want to. If you offer to pay .5% more than the competing listings don't you think all the agents in that market with their connections, locally, nationally & internationally are going to go find a buyer versus the other 3 listings not offering a buyer agent anything?? They could offer .5% more commission to a buyer agent or drop their sale price $10,000. 🤔 Do the math and make it make sense. But by all means, keep paying the monthly taxes, insurance, and maintenance costs to "save money" 😂
You can still offer to pay a cooperating broker commission they are just stopping it from being advertised on the MLS.
I have been in lending for 20 plus years. Lawyers are totally worthless !
No real estate agents are literally one of the most worthless jobs in ALL of America. Time to learn a real skill for them.
I should sue this lawyer for defaming Realtors!
LOL, too many 'agents' thrive on FOMOs and when the market/economy turns they are right back out there 'tryna' sell the same property as a short sale or foreclosure ... How do the previous purchasers feel, you know that little family that was 'sold' on a dream of owning an overpriced 'commodity' and when sitting on an emotional fence only to be pushed off the financial cliff by a commission driven proponent? Face it ethics and morals really don't run too high on that end of the deal, do they ...
You’re just mad you don’t get to ride the gravy train anymore!! Bye bye cleatus.
Ohhh your poor little real estate agent, now it won’t be as easy to scam people anymore ;) your gravy train is over, try learning a REAL skill that actually benefits your community.
I think realtors might do ok with this. I have hesitated to sell my house for many years because of the ridiculous fees they will take from me. Maybe the number of total sales will increase due to this change.
If you waited years to sell your house due to fees, then you are not informed. These commissions are negotiable. This 6% was the norm in some places but not automatic. If you watch any tv there are always agents willing to list for 1%. Do you not have one friend in real estate? As far as agents not showing the home because you are only offering 2% to the buyer's agent well be prepared to have to deal with a lot of unqualified people to come through scouting out your place place and wasting your time. Hopefully you didn't wait to sell during the peak and now you lost thousands.
@@widowmaker7462 Thanks for the info. I bought at low price in 1987 so every time I've thought about selling in recent years the commission seems crazy. Actually I'm happy with my house for the most part. My wife is the one who wants to move. When I tell her the commission she quiets down! lol
And. Be very careful opening your door for a complete stranger that saw your home online or the sign in the yard. I'm concerned for naive homeowners who don't realize the risks. Leaving out valuables, keys, medicine, weapons to be stolen. They are clueless that they could be targeted by bad guys.
people who worry about the "ridiculous fees" are either stupid or ignorant of what all a realtor does. It isn't a walk in the park (I am not a realtor but I have worked close to a few for years). If you have a good, honest realtor, he or she will be doing a lot more than listing and ordering pictures of your house. Not to mention the advertising they invest, there is so much more involved than minimal work. The problem is the big ballers in the industry, who make bank, dgaf about their clients. I have learned that if you want a realtor with integrity, you may not want to go with a big firm. At the end of the day, realtors are salespeople, and the stereotypes around sleazy salespeople apply here as well. They aren't all douche bags, but a lot of them are. And just because they are charming and fun/nice/sweet... it doesn't mean they are good people.
The broker I worked with is possibly the most honest person I have ever met, he is hard working and straight-shooting, willing to own the mistakes he makes and make them right. That is something I have noted that a lot of other realtors in my area are unwilling to do.
Fees will not change due to this. If you think so, you’re reading headlines and not what the lawsuit states. There’s 18 states including my own that haven’t required BB fees for years and it’s been business as usual.
Im so confused. So are they just eliminated a buyers agent from being paid?
No seller on earth is going to just give a buyer 3% just because ... They are going to keep the money ... They act like the show American Greed was a fictional tale .... 🤣🤣🤣🤣🤣🤣
Nothing going to happen my real estate agent just told me
Realtors have reduced themselves to order takers.
Seventy thousand new armed IRS agents. Whom in their right mind would want to live in this state ? BlackRock racketeering through corporate whores aka democraps whom work that grift through Keller Williams.
Everyone I’ve met who says this can’t read/fill out a purchase agreement lol
unable to obtain HO3 insurance on a town home need to close in 3 days quick how do you fix that... go ...
Kill panel on the electric box rusted out in 1/2 ( unable to get a replacement) 4 quotes at $2,600 to fix the budget only allow for $500 quick whats the solution???
Va Eligibility denied due to serving less than the required time in the military, and rejected on appeal quick how do you fix that?
REsidential real estate is basically following the commercial real estate model of negotiating the commission split. "Comminicating the commission split with seller agent and buyers agent only digferrence" without bring on MLS. Plus I believe the buyers agent can make more $ by negotiating commission with the buyer and getting paid commission by sellers agent, double win for buyers agent😂
How about cutting insurance rates Nd banks
So the listing agent is forced to act as a dual agent with his suggestions
This will kill fair housing. Buyers will be at risk unrepresented unless the buyer can pay for an agent to represent them. Horrible change overall
This! And, Sellers WILL discriminate. I have countless examples of times I have had to advise a Seller they would violate the Fair Housing Act by not accepting an offer specifially due to race, national origin, sexual orientation, familial status, religion. 🙊
Wrong. Your sellin snake oil. Agents aren’t needed, that’s the point. The only ones crying are the ones that don’t get to ride the gravy train on the backs of hard earned Americans $.
Ignorance is a bliss, the real estate commission have never been 6% it has always been negotiable, actually lately was like 5 or 4% the standard, since I started I never saw buyers agent commission at 2.7% it was either 2.5% or 2% most of the time, and you were never required to use a Realtor or agent, That’s why FSBO’s exist! Liars!
I’m curious to know if the hedge companies, etc. put him up to this lawsuit to stifle first-time homebuyers even more to give them hedge fund companies even a mire leg up to purchase single families in order to rent them out to those first timers who can no longer afford homes.
Michael Ketchmark is in the market to buy a new home or two or ten mansions with the settlement 😂
You think he is going to keep all that money himself? He has to kick some up to the DOJ. The real attorney.
People on here acting like your realtor wants you to pay as little as possible for the house. All realtors want you to win the house. Good riddance to realtors
The cushy jobs are slowly going away.
The day has come.
You can sell your house yourself, hire a lawyer that specializes in real estate, they will complete all paper work and set up the closing. Typically 1000.00 in some cases 1% of sale price.
You can also pull your own teeth, drive yourself home drunk, cut your own hair, sow your own clothes, make your own shoes, make your own medicine none of which you will do well at accomplishing.
And where did you get your buyer from thin air?
You can also invite complete internet strangers or people who drove by & saw the sign into your home who can take your keys, credit cards, medications, weapons or even use your kitchen knives to hold you hostage and take your for a ride to the ATM to make a withdrawal and let's hope that's all they want. Don't leave your innocent children in the house when these "buyers" come through. A lot of perverts now might leave a camera in their rooms or yours or drop an airbag in their backpack to track them. But, hey, you saved money! 😂
Exactly. What realtors skim off the top of a sale is FAR more than any actual costs associated with the transaction. That is why so many realtors are in the millionaires' club despite many not having any required formal education.
@@efremsilerio5291 Speak for yourself. It sounds like you would be surprised at the abilities of many people to perform outside their own professions (tooth pulling aside).
I hired a realtor to sell my house 7 years ago and I told him that I would list it with him for 1% and I would use him to buy my next house. The idea of paying 6% every time you sell your property is ridiculous and quite $$$. A 6% commission on a $500K home amounts to $30K for the seller. That is an insane amount of money to pay, especially when the market is hot and the listing agent does absolutely nothing. As a seller, I would rather pay, the 3% to the buyers agent and a flat fee to get my house listed on the MLS. That is how it should be and the best way to sell the house.
Did you just say the listing agent does nothing? 😂 You must have had a new build to sell then. Zero inspections, Zero reports, Zero staging, Zero marketing, Zero insurance Zero everything. Bless your heart.
@@Iamlight707 They do NOTHING. Inspections were done by the buyer's inspector (Paid by them). Reports are EASILY found online and they presented nothing I did not know already based on sales in the neighborhood. No Marketing. Basically, the house was listed on the MLS and the house sold in 4 days (three buyers wanted it) So yes, ZERO, ZERO, ZERO. ZIPPO. The Buyer'sagent does much much more than any listing agent Either way, we are all getting hosed by the amount of money they make from the transaction of a home. $30K to sell a $500K house is ridiculous and you know it. Do not get me started with the IQ of some of these agents.
Perhaps you can get your license and list yourself in the mls….don’t forget to pay your dues
@@Iamlight707 They listing agent does not do anything. Nothing. Just rack up the commissions while the buyer's agent does it all.
Absolutely agree with you and congrats on the way you dealt with your realtor. Lots of them are piling on in this comment section to defend those $30,000+ commissions made in days or weeks and then they turn around and accuse this attorney of greed because he got a payout for 40 YEARS of work on an issue that needed to be addressed in MN. Listing agents absolutely should be compensated for their work and expense but the kinds of commissions they are drawing are ridiculous for a profession that does not even require a bachelor's degree.
Wouldn’t this result in my house sitting on the market longer?
You are a hero
How is it misrepresentation when the buyers and the sellers signed the contracts?
Buyers want sellers to pay the agent and contribute to closing costs. Heck, dont buy a house if you can't afford it!!😮
He is one of those attorneys who wants to raise his fees so a Realtor can be replaced by him. I’d like to see him take out buyers to see 20-50 homes and try to negotiate against 30 other offers, or spend the money and time to market a home. The list goes on and on. He’s the type of atty that makes a disparaging comment when he has to give the agent their fee for service. Jealously looks very poorly on you. BTW. Any chance we can see what he gets paid for his time. He gets paid no matter what no matter if he’s competent or not. We only get paid for performance.
Can't see any attorneys answering calls and texts at 10pm with clients trying to explain escalation clauses and how to craft a winning offer. They are not out in the trenches, probably don't have access to any current market data.
In this case why even bother helping a buyer?
You can tell who's a realtor in the comments 🤣. Y'all big mad 😡😂
Does this save the buyers some money? Asking for a soon to be buyer…🙏
No it doesn't, It might save the seller money because they are less incentivized to pay for the buyer's real estate agent. This is going to increase the cost on the buyer as they will need to pay for their buyer agent in part or in full. Because of this, many buyers will opt to purchase a home unrepresented and they will be negotiating against an experience listing agent. Not a good situation for buyers especially first time and financially constricted buyers.
As a buy you can reach out to the realtor that is selling the house,and you can save all that money.
@@PutinGayTwin how is the buyer going to save money?
Try to buy a house without an agent and give earnest money and deposit. Then the house does not appraise with your lender. You are out big money.@@justinkirk5449
No - you won't save money. Buyers 'buy' real estate with cash or financing at a negotiated price. You will eventually want to kick the tires with someone and if you're fine trusting the others guys agent to do all your bidding on the biggest purchase of your life, that's your choice.
I am looking to buy a home under 450K and sell my current home, which has a tax assessment value of 425K. I don't want a mortgage. Any advise?
Great, let’s get lawyers more involved in our lives.
It’s funny how he said “could make huge changes” like he knows it might not do anything for the consumer. This was more about his pocket
Is a 4.5 percent commission too high when a realtor is selling your house and helping you make a purchase? My agent does not have to stage anything/does not have a stager or professional photographer. I was also told my house is an easy sell.
There are no hidden fees. What a fool
First of all, buyers agents are not only negotiating price on the buyer's behalf, but do tons of other work as well. So now, attorneys put up the case about commissions and are saying go to them for help and don't pay a realtor. Just pay them.. Maybe another case should be created now - on the attorney's commission. How much do they charge for their services?
Wow you're beautiful
If the Sellers receive financial relief from the Settlement, then I am starting another law suit for the Seller's Agent to receive at least 3 - 2.5 percent of their settlement amount being reimbursed, because I too had to share my 6 or 5 percent with the Buyer's Agent, and I want it back just like Seller's. The Seller's Agent should be compensated as well. #Seller'sWantCompensationBackToo.
Resale market is hard already for new buyers because purchasing a home is so expensive these days. Now, if buyers want to get into a new transaction and be represented they need to pay even more. How about all of those sellers complaining pay back the money they save when they purchase a home and didn't paid for their buyers agent.
I'm wondering of Utah will face this as well.
The bottom line there is nothing get around, fees were always negotiable, and yes there will be to circumnavigate the MLS
I have never met a listing agent in MN who will negotiate on the 2.7% part of the commission that goes to the buyer's agent. Like this attorney said, "Why would you want to pay someone to negotiate against you?"
The goal is to stop coercing sellers to pay for something that is against their interests. Everything should be negotiable without the powerful real estate lobby setting rules that put its own interests ahead of the parties to the transaction,
Who gets the money in this lawsuit?
"pay it to the buyer"
Who ?
Who's going to pay it to the buyer?
Are the lawyers doing this, BS going be forced by law to lower their rate to 16.5 % and keep it that way?
This is honestly terrible news. Its not going to just effect realtors, but buyers and sellers also. What a shame. This is will have a huge effect on pur economy and not in a good way.
The big problem with this silly suit is the intermediary model where the sellers and buyers best interests are in jeopardy as both parties should have representation.
It's the very reason the buyers agent model came into existence.
Sellers felt agents were not representing their best interests as they might be motivated to get commissions from both sides of the transaction.
This whole suit is beyond dumb.
Commissions have been and always will be negotiable.
Keep in mind this case was held in a state that believes men can have babies, men can compete in women's sports, defund the police, minorities like me are too dumb to get an ID and natural antibodies don't exist.
So silly!
On top of all this silliness are the attorney's who get al least 40% on settlement cases. I repeat 40%. Now how is price gouging who???? So mind numbingly dumb!!!
He didn't want a flat fee! 😂
Not sure how this guy got away with a claim that EVERY Realtor charges 6% and that it is mandatory. It is neither. wonder what % he got to hire those high dollar attorneys.
Flat fee MLS listing to include recent market comparison. If needed. Paid up front by seller.
Show your own house. If you can't answer potential buyer questions, or understand what offer ammount you should accept or reject... then you need to go the 6% commision route. And pay the man
Intermediary without appointments. A good one will have a realestate transaction coordinator.
Flat fee split between seller and buyer 20/80. But Extremely negotiable
Buyers need to pay for their own agent!!! Period!! They must pay for the level of assistance they need.
1st it’s not Relator - it’s Realtor .. and then I’d like to congratulate the attorneys involved on the 100 million ++ fees from this settlement . I had to 😂😂😂when he said they are not 4:32 in it for the money .. this will hurt so many buyers, hard to believe that all these very concerned attorneys can’t see what this is potentially doing to buyers who are not able to come up w addl cash to pay their broker .
Never feel sorry for Realtors.
The real estate transactions in the U.S. have often associated with unsavory activities and Ponzi Schemes. Consider the following:
1) In most countries, the commission is around 1%. But in the U.S., a large number of Parasites decided to use the real estate license, which takes less effort than a high school diploma, to demand 6% commission..!!! .
2) In many cases, the seller and the buyer agents work together to fleece both the seller and the buyer, and share the loot with the Brokers and the Realtors. This encourages collusion among real estate companies to provide sellers and buyers for each other and laugh all the way to the Bank.
3) The game starts with seeking a listing by telling the seller that without a listing agreement the property cannot be posted on multi-listing, and thus trapping the seller into a listing agreement. And to tighten the trap, they encourage some cosmetic work and "staging" for the property and offer $50,000 or more interest free loan for 1-3 months. This set the stage for pushing the seller to lower the original price, or face the additional cost of paying interest.
4) The next step is to ask other agents to visit the property and provide the so-called "Feedback", which is intended to highlight the negative aspects of the property and push the seller to lower the price even further. For every $10,000 deduction in price, the reduction in commission is only few hundred dollars, which the agents are happy to let go to get their money fast.
never feel sorry for jerks who paint with a wide brush.
@@deeh5126. Never feel sorry for a realtor doing a portrait of a jerk, using a wide brush stroke 👨🎨 🎨
Exactly. No better than used car salesmen but collect higher fees and commissions.
Hilarious, now you can negotiate yourself if you want, with an experienced negotiator... Until the listing agent tells you that you have to pay him 3% to write the contract for you. Now that agent will make twice as much with no competition.
This lawsuit was brought in MN which has had dual agency for years, so agents have been collecting double all along without acting in anyone's best interest but their own. That is part of why the suit was brought. Any buyer can go to an attorney for the contract and pay a fraction of that 3% you mentioned because they charge by the hour, so it's going to be around $1k instead of many times that amount.
@@dao8805 Then that should only apply in Minnesota. Dual Agency is illegal in our state. In my experience, attorneys often make the process unnecessarily more complex and drag it on often indefinitely. I've personally dealt with 2 attorneys, on the same deal, that stopped returning calls all together for months.
@@dao8805 then that should just apply in Minnesota. Dual agency is illegal in my state. In my experience, though helpful in some scenarios, attorneys are often intellectuals that are fantastic at interpreting or applying the law, but horrible at negotiation. They often introduce unnecessary complexity into a transaction and can extend timelines indefinitely. On a personal transaction, in an attorney mandated state, I lost the transaction because the attorney was not motivated to close it. He was completely unresponsive for weeks. After firing him and hiring another attorney, she did the same thing. I understand this is anecdotal, but I've heard the same from dozens of professionals in this field.... My biggest worry is the first time homebuyer, FHA, or VA buyer. They often have very little down, in the case of FHA 3.5%, and would need to almost double their down payment to get a transaction completed if they made the intelligent decision to hire a professional to assist them with finding and purchasing a home. What this means is that homes will then become less affordable for them and in turn, the seller is exposed to a smaller pool of qualified buyers due to the hardship now shifted across the table.
Why is it 33 1/3 Attorney?
Let me get this strait,
Realtors lost the lawsuit because of a percentage fees was paid .
Ok
What percentage is this lawer the getting from this lawsuit ?
This started with a lawsuit over undisclosed dual agency, which should be illegal because it is a conflict of interest.
The goal is to stop coercing sellers to pay for something that is against their interests. Everything should be negotiable without the powerful real estate lobby making rules that benefit its own interests first.
@@dao8805
Isn't this the same way attorneys make their $ ?
They get a percentage of the settlement (closing)
@@dougg4633In MN, where this attorney is, almost every closing is handled by a title company, no attorney involved. Only in certain types of risky tort cases that come with very high up-front expenses that the attorney is responsible for, do they charge a percentage. Keep in mind, this attorney has been investing time and expenses in this case for 40 YEARS. Otherwise, attorneys charge by the hour and are required to have an advanced education for which they were not only paying tuition but had to forgo income that other people were earning while they were in law school. Not saying I am a fan of attorneys, but it's important to see this for what it is. There are a lot of realtors who make $30k+ plus commissions on single properties that sell in days or weeks and they are not even required to have a bachelor's degree. In this market, any agent not making a million or more per year is either asleep or incompetent. Is the work they are doing for that kind of money really worth that. Not in my opinion. You cannot get a contract for less than 6% in MN and that is basically why this case was brought; realtors are absolutely colluding and consumers are paying for it. This case needed to happen and is long overdue.
He’s worried about the realtor % a good question is how much is his % on the settlement? Will he give it to the “hurt sellers”